Homebuyers have little interest in the first-time homebuyer tax credit, largely because of the repayment feature, according to a survey of National Association of Realtor (NAR) members.
In its continued effort to persuade Congress to amend the first-time homebuyer tax credit, NAR members were surveyed on their perception of the credit's effectiveness on clients.
Real estate agents told NAR more than two-thirds of clients were first-time buyers, but while potential first-time homebuyers are actively shopping for homes, few are actually purchasing.
The survey asked agents what they felt were the obstacles of the tax credit. They could make multiple selections on the survey. Agents responded the biggest challenges were:
1. The credit must the repaid (71%)
2. Consumers view the repayment of the credit as adding to their debt load (60%)
3. Applies only to first-time homebuyers (43%)
4. Credit is not available as cash at settlement (42%)
5. Income limits (23%)
6. Tax credit is not large enough (15%)
Additionally, 27 percent of agents that took the survey said they had not completed a single sale to their first-time homebuyer clients, and another 26 percent said they had only closed one transaction. NAR did not indicate over what period of time those results come from, but the survey was administered during the week of January 5.
In its continued effort to persuade Congress to amend the first-time homebuyer tax credit, NAR members were surveyed on their perception of the credit's effectiveness on clients.
Real estate agents told NAR more than two-thirds of clients were first-time buyers, but while potential first-time homebuyers are actively shopping for homes, few are actually purchasing.
The survey asked agents what they felt were the obstacles of the tax credit. They could make multiple selections on the survey. Agents responded the biggest challenges were:
1. The credit must the repaid (71%)
2. Consumers view the repayment of the credit as adding to their debt load (60%)
3. Applies only to first-time homebuyers (43%)
4. Credit is not available as cash at settlement (42%)
5. Income limits (23%)
6. Tax credit is not large enough (15%)
Additionally, 27 percent of agents that took the survey said they had not completed a single sale to their first-time homebuyer clients, and another 26 percent said they had only closed one transaction. NAR did not indicate over what period of time those results come from, but the survey was administered during the week of January 5.
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